Japan may be made to pay a heavy price in terms of adverse economic impact if the Tokyo 2020 Olympic Games are not held as scheduled from July 24 to August 9. Uncertainty looms large over the quadrennial Games due to global Coronavirus (COVID-19) threat.
Cancellation of the Tokyo 2020 Games, as is being feared in wake of the COVID -19 global spread, will tank the gross domestic product of Japan by 1.4 % for the year 2020, SMBC Nikko Securities Inc. has stated in a report.
The report suggests that the Tokyo 2020 Games would generate ¥670 billion ($6.4 billion) in consumer demand. However, it the Games don’t take place as scheduled the nation would lose ¥7.8 trillion ($74.1 billion) in its annual GDP. The corporate income for the year would go down by 24.4% in comparison to the 2019 fiscal, states the report.
The report also suggests that the Games face a cancellation threat if the Coronavirus outbreak is not controlled by July.
Even if the Games go on as per schedule, the Japanese economy would still bear some brunt of the COVID-19 outbreak. A plunge in tourism, coupled with weakened domestic consumption and other allied factors, Corporate revenue would still be 14.9% lower than the last fiscal.
“To prepare for the worst, the Government needs to make available support measures such as debt guarantees for small firms,” Japanese news agency Kyodo has quoted SMBC Nikko chief economist Junichi Makino as saying.
Tokyo 2020 Organising Committee as well as the International Olympic Committee are leaving no stone unturned to ensure that the Games go on as per schedule.
The IOC has time and against asserted that Tokyo 2020 will take place as planned despite fears the event could be cancelled or postponed because of fears over coronavirus. It will be highly unlikely to get a window for the Games, if the July 24-August timeline is missed.